(Kitco News) - Australia's next rare earths producer, Hastings Technology Metals (ASX: HAS) announced today that it has entered into a binding share purchase agreement to acquire a 22.1% strategic shareholding in Neo Performance Materials (TSX: NEO), a leading global rare earth processing and advanced permanent magnets producer.
The company said that the proposed acquisition provides Hastings with a strategic stake in Neo and exposure to the global downstream processing of rare earth materials into magnets.
According to the company's statement, the acquisition has been agreed at a price of C$15.00 per Neo share, representing a total consideration of C$135m, which equates to a 4.7% premium to Neo's closing share price of C$14.33 per share on Wednesday, 24 August 2022; and 2.8% premium to Neo's 10-day VWAP of C$14.60 per share up to and including Wednesday, 24 August 2022.
Hastings added that the acquisition is intended to be funded by a A$150 million cornerstone investment in Hastings by Wyloo Metals, through the issuance of secured, redeemable, exchangeable notes.
Commenting on the transaction, Executive Chairman Charles Lew said, "The acquisition of the Neo stake represents an important strategic milestone for Hastings, providing the company and its shareholders with a unique opportunity to take further steps towards realising the Hastings 2.0 strategy. We are also thrilled to welcome the support of and strategic investment by Wyloo Metals. We see Wyloo's commitment to Hastings as an important validation of our strategy and objectives."
Hastings Technology Metals is a rare earths company aimed to become the world's next producer of neodymium and praseodymium concentrate ("NdPr"). NdPr are vital components used to manufacture permanent magnets used every day in advanced technology products ranging from electric vehicles to wind turbines, robotics, medical applications, digital devices, etc.
Wyloo Metals is a privately-owned metals company with a focus on investing in the critical mineral supply chain. Wyloo Metals manages a diverse portfolio of exploration and development projects and cornerstone interests in a number of public companies. The company is owned by mining billionaire Andrew Forrest.
| Nevada Copper announces proposed $93M financing package and restart plan for Pumpkin Hollow |
